Bankruptcy and Property

rodgerthelodger

Hi, can anyone help?

Over the years I have accumulated circa £55K in unsecured debt, I also owe my mother around 30K

Last December I was three months into mortgage arrears and was on course to have my property repossessed, my mortgage was £226k and I had a secured loan the flat for £24k.

If I was repossessed I would have lost everything and would have had to move back home. I was able to get my mother to remortgage her home to the max, so that she had a big enough deposit to get a buy to let mortgage for £250k, which enabled her to pay off my mortgage and secured loan, just!

However my flat was valued by her mortgage company at £320K (at least 20k over its value in my eyes) I signed a statutory declaration and paid some insurance before the sale completed, as it was regarded as a sale undervalue. Although my mother paid £250k for it I owed her approx £30k.

I still owe £55k and as my partner and I are expecting our first child next year. I cannot enter into and IVA as the repayments over 5 years would cripple me and my family

I want to declare myself Bankrupt but have been told that the flat my mother now owes can be taken off her (I still live there and pay rent) and sold to pay off my creditors.

Can someone please advise on my best course of action?

Many thanks
RTL

tigerfeet2006

The first thing you should do is ring National Debtline or another one of the guys in my sig. If you decide to go BR then the judge and the OR will ask if you have taken proffesional advice so best to get it now.

Any other questions you have just keep posting.

Oh! and welcome to the board.

rodgerthelodger

Thanks Tigerfeet!

Richard_S

Hi RTL,

You certainly need to take professional advice, preferably from a solicitor specialising in insolvency. The O.R most certainly will examine any transfer of assets if you were insolvent at the point of transfer. What action they decide to take will ultimately depend on the valuation of the property at the time the transfer took place.

Some solicitors do offer an initial free consultation, and depending on your income you may qualify for legal aid. Insolvency Practitioners will be able to advise but there'll be a fee to pay there that may or may not be worth the advice you get.

Regards

Richard